Kirloskar Industries Limited (KIRLOSIND) AI Stock Analysis

• Market Cap: ₹33.97B
• Dividend Yield: 0.4%
• Average Volume (3M): 368.00
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.30
• Revenue Growth: 4.87%
• EPS Growth: -13.98%
• Country: IN
• Employees: 17
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 49.17
• Shares Outstanding: 10,509,372
• 10 Day Avg. Volume: 207
• 30 Day Avg. Volume: 368
• PEG Ratio: -0.83
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 38.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹2,952.00 ▼(-6.04% Downside)

Kirloskar Industries Limited's overall stock score is primarily influenced by strong financial performance, with robust revenue growth and operational efficiency. However, the technical analysis indicates bearish momentum, which is a significant concern. The valuation is fair but not compelling, with a moderate P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

Positive Factors

Sustained Revenue Growth (2020-2025)

A nearly fourfold revenue rise from 2020–2025 demonstrates durable demand across pumps, engines and industrial products and validates scale expansion. Sustained top-line growth supports long-term investment, broader distribution reach and resilience to cyclical pressures in manufacturing.

Improved Gross and EBITDA Margins

Material gross margin improvement and a robust EBITDA margin point to stronger manufacturing efficiency, pricing power and favorable product mix. These margin gains are structural levers that enhance free cash generation and the firm's ability to reinvest in R&D and capex over the medium term.

Strong Cash Generation and Operating Cash Conversion

Rising free cash flow and an operating-cash-to-net-income ratio of 4.0 indicate durable cash-generation capacity. Reliable operating cash supports debt servicing, capital expenditure and strategic investments without heavy reliance on external funding, strengthening long-term financial flexibility.

Negative Factors

Declining Net Profit Margin and Return on Equity

A falling net margin (to 2.3% in 2025) and ROE drop signal persistent profitability compression. Over the medium term this limits retained-earnings growth and shareholder returns, reducing capacity to fund expansion organically and increasing sensitivity to input cost or demand shocks.

Low Free Cash Flow Conversion Relative to Net Income

Only 60% conversion of reported earnings to free cash flow suggests working capital needs or non-cash accounting divergence. Structurally weak cash conversion constrains dividend policy, deleveraging and reinvestment, and can necessitate external financing for growth initiatives over time.

Negative EPS Growth

Nearly 14% negative EPS growth indicates recurring pressure on bottom-line profitability. Persistent EPS declines erode investor confidence, limit retained earnings for capex, and can reflect structural margin or cost issues that impede sustainable earnings recovery over several quarters.

Kirloskar Industries Limited Business Overview & Revenue Model

Company Description

Kirloskar Industries Limited manufactures and sells iron castings in India. The company also generates and sells wind-power electricity through seven windmills with total installed capacity of 5.6 megawatts in Maharashtra; owns lands and buildings, and apartments and offices; and invests in properties and securities. In addition, it engages in real estate activities; and manufacturing steel and seamless tubes. The company was formerly known as Kirloskar Oil Engines Limited and changed its name to Kirloskar Industries Limited in March 2010. The company was incorporated in 1978 and is based in Pune, India.

How the Company Makes Money

Kirloskar Industries Limited generates revenue through multiple streams, primarily by manufacturing and selling industrial products, including pumps and engines that serve various sectors such as agriculture, construction, and infrastructure. The company leverages its strong brand reputation and established distribution networks to drive sales. Additionally, KIRLOSIND engages in strategic partnerships and collaborations with other firms to expand its market reach and enhance its product offerings. The company also capitalizes on after-sales services and maintenance contracts, which contribute to its recurring revenue. By focusing on innovation and responding to market demands, KIRLOSIND continues to explore new business opportunities and optimize its operational efficiencies to bolster its financial performance.

Kirloskar Industries Limited Financial Statement Overview

Summary

Kirloskar Industries Limited shows strong revenue growth and operational efficiency, with improving gross profit margins and a robust EBITDA margin. The balance sheet is solid with a healthy equity base and low leverage. However, declining net profit margins and return on equity highlight areas for profitability improvement. Effective cash generation is evident, although free cash flow relative to net income could be improved.

Income Statement

Kirloskar Industries Limited shows strong revenue growth from 2020 to 2025, increasing from 18.8 billion to 65.9 billion. The gross profit margin improved significantly, reaching 43.4% in 2025. However, the net profit margin declined to 2.3% in 2025 from 3.2% in 2024, indicating profitability challenges despite higher revenues. EBITDA margin remains robust at 12.9%, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio improved over the years, standing at 0.20 in 2025, indicating a strong equity base relative to debt. Return on equity decreased to 2.4% in 2025, suggesting declining profitability. The equity ratio is healthy at 54.0%, demonstrating solid financial stability.

Cash Flow

Free cash flow growth is positive, with free cash flow rising to 877.7 million in 2025 from 763.2 million in 2024. The operating cash flow to net income ratio is strong at 4.0, indicating effective cash generation relative to net earnings. However, the free cash flow to net income ratio is lower at 0.6, suggesting that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.45B	65.98B	63.29B	64.05B	37.25B	19.93B
Gross Profit	29.00B	8.39B	16.04B	10.16B	10.24B	6.62B
EBITDA	8.91B	8.50B	9.20B	9.25B	6.95B	4.84B
Net Income	1.64B	1.49B	2.00B	2.18B	1.94B	1.64B
Balance Sheet
Total Assets	0.00	116.51B	97.66B	75.36B	67.86B	31.96B
Cash, Cash Equivalents and Short-Term Investments	2.87B	1.62B	1.04B	1.96B	984.90M	661.90M
Total Debt	0.00	12.76B	12.26B	9.72B	12.09B	2.93B
Total Liabilities	-81.56B	34.95B	30.25B	26.10B	27.21B	9.61B
Stockholders Equity	81.56B	62.95B	49.91B	32.53B	23.29B	17.46B
Cash Flow
Free Cash Flow	0.00	877.70M	771.30M	2.79B	-1.18B	354.30M
Operating Cash Flow	0.00	5.97B	5.76B	7.60B	3.17B	2.56B
Investing Cash Flow	0.00	-5.37B	-6.00B	-3.69B	-9.31B	-1.94B
Financing Cash Flow	0.00	-699.10M	-45.90M	-3.97B	-556.00M	-559.20M

Kirloskar Industries Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3141.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KIRLOSIND, the sentiment is Neutral. The current price of 3141.65 is above the 20-day moving average (MA) of 3069.44, below the 50-day MA of 3212.31, and below the 200-day MA of 3658.85, indicating a neutral trend. The MACD of -17.92 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 72.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:KIRLOSIND.

Kirloskar Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELECON	73 Outperform	₹102.11B	20.84	―	0.41%	20.94%	45.63%
ELGIEQUIP	66 Neutral	₹156.03B	39.94	―	0.47%	9.46%	18.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	60 Neutral	₹74.52B	39.45	―	0.97%	6.51%	-1.61%
KSB	59 Neutral	₹125.09B	47.69	―	0.51%	9.50%	14.52%
KIRLOSIND	58 Neutral	₹33.97B	19.67	―	0.40%	4.87%	-13.98%
KECL	49 Neutral	₹6.03B	84.63	―	―	-11.25%	-48.96%

Kirloskar Industries Limited Corporate Events

Kirloskar Industries’ HR Head Jagdish Purandare Relieved After Internal Group Move

Kirloskar Industries Limited has announced that Jagdish Purandare, who had earlier tendered his resignation after being offered a new role within the Kirloskar Group, has formally ceased to serve as the company’s Head – Human Resource with effect from the close of business on 31 December 2025. The company has recorded its appreciation for Purandare’s contributions, clarified that there are no material reasons for his exit beyond the internal group role change, and notified the exchanges in line with SEBI’s disclosure norms, signalling a planned and orderly transition in its senior management ranks.

Kirloskar Industries Strengthens Leadership With New HR Head and Independent Director

Kirloskar Industries Limited has announced a key management change with the appointment of Rohan Sapkal as Head of Human Resources, effective 1 January 2026, in line with regulatory disclosure requirements. The company also confirmed earlier board decisions from November 2025, including the allotment of 3,237 equity shares under its 2019 Employee Stock Appreciation Rights plan, which marginally increased its paid-up share capital, and the induction of Godrej Group HR veteran Sumit Mitra as an independent director for a five-year term, moves that collectively signal a continued focus on strengthening governance, talent leadership, and employee-linked ownership structures.

Kirloskar Industries Names Rohan Sapkal as Head of Human Resources from January 2026

Kirloskar Industries Limited has announced the appointment of Rohan Sapkal as Head of Human Resources, effective 1 January 2026, in line with disclosure requirements under SEBI’s listing regulations. The move signals a strengthening of the company’s HR leadership at a time when governance and talent management are increasingly important for listed industrial groups, and is part of a broader pattern of board- and senior-level appointments and equity-based incentives aimed at reinforcing corporate oversight and aligning employees’ interests with shareholders.

Kirloskar Industries Opens Six-Month Special Window for Legacy Physical Share Transfers

Kirloskar Industries Limited has published its fourth round of newspaper notices in Financial Express and Loksatta, informing shareholders about a special six‑month window, from 7 July 2025 to 6 January 2026, for re-lodgement of transfer requests relating to physical shares, in line with a Securities and Exchange Board of India circular. The initiative targets transfer deeds lodged before 1 April 2019 that were rejected or left unattended and clarifies that any such re-lodged transfers will now be processed only in dematerialised form, reinforcing the regulator’s broader push towards demat-only settlements and offering legacy shareholders a final opportunity to regularise their holdings, which could improve share transfer compliance and reduce operational friction for the company and its registrar.

Kirloskar Industries Updates on Subsidiary Compliance

Kirloskar Industries Limited has announced an update regarding its material subsidiary, Kirloskar Ferrous Industries Limited (KFIL). KFIL has informed the stock exchanges about a notice to its members concerning postal ballot and e-voting information, which has been published in major newspapers. This update signifies KFIL’s compliance with SEBI regulations and ensures transparency with its stakeholders.

Kirloskar Industries Announces Special Window for Share Transfer Requests

Kirloskar Industries Limited has announced a special window for the re-lodgement of transfer requests for physical shares, in compliance with a SEBI circular dated July 2025. The company has submitted multiple reports regarding these transfer requests, with the latest report for November 2025 indicating that two requests were received and processed, but none were approved. This initiative reflects the company’s commitment to regulatory compliance and transparency in its operations, potentially impacting shareholder relations and market perceptions.

Kirloskar Industries Schedules Investor and Analyst Meetings

Kirloskar Industries Limited has announced a schedule of meetings with investors, analysts, and financial institutions as per SEBI regulations. These interactions, set for December 11 and 12, 2025, aim to engage with stakeholders and provide insights into the company’s operations and strategic direction.

Kirloskar Ferrous Industries Plans Investor Meeting

Kirloskar Industries Limited announced that its subsidiary, Kirloskar Ferrous Industries Limited, has scheduled a meeting with institutional investors and analysts. This engagement is part of their ongoing efforts to maintain transparency and communicate effectively with stakeholders, potentially impacting investor relations and market perception.